Gross Profit Calculator

Name: Gross Profit Calculator
Author: CalculatorBolt

Calculate gross profit, gross profit margin, and markup from revenue and cost of goods sold (COGS). Enter total revenue and COGS to get instant profitability metrics for your business. Informational only—consult an accountant for detailed financial analysis. Explore more tools on free calculators on CalculatorBolt.

Calculator

Total Revenue

Total sales revenue

Cost of Goods Sold (COGS)

Direct costs to produce goods/services

Calculate what revenue you need to achieve a target gross profit given your COGS.

Target Gross Profit

Desired gross profit amount

Your COGS

Your cost of goods sold

Gross Profit

Margin (%)

Markup (%)

Import JSON

How it works

Gross Profit = Total Revenue - Cost of Goods Sold (COGS)

Gross Profit Margin (%) = (Gross Profit ÷ Total Revenue) × 100

Markup (%) = (Gross Profit ÷ COGS) × 100

We calculate all three key profitability metrics to help you understand your business performance.

Inputs explained

Total Revenue: The total sales revenue from your products or services before any deductions.
Cost of Goods Sold (COGS): Direct costs to produce your goods or deliver your services. This includes raw materials, direct labor, manufacturing overhead, and inventory costs. Does NOT include operating expenses like rent, marketing, or administrative salaries.

Example

A retail business has:

Total Revenue = $100,000
COGS = $60,000

Results:

Gross Profit = $100,000 - $60,000 = $40,000
Gross Profit Margin = ($40,000 ÷ $100,000) × 100 = 40%
Markup = ($40,000 ÷ $60,000) × 100 = 66.67%

Tips & notes

Gross profit shows your profitability before accounting for operating expenses, taxes, and other indirect costs.
Margin expresses profitability as a percentage of revenue—how much of each dollar in sales is profit.
Markup expresses profitability as a percentage of COGS—how much you're adding on top of your costs.
For the same gross profit amount, markup will always be higher than margin because it's calculated on a smaller base (COGS vs. Revenue).
Industry benchmarks vary widely—compare your metrics to your specific industry standards.
Improving gross profit margin can be achieved by increasing prices, reducing COGS, or shifting to higher-margin products/services.
Reverse calculation: Use the "Find Revenue for Target GP" tool to determine what revenue you need to achieve a specific gross profit goal.

Margin vs. Markup Comparison

Metric	Formula	Use Case
Gross Profit Margin	(Gross Profit ÷ Revenue) × 100	Analyzing profitability relative to sales
Markup	(Gross Profit ÷ COGS) × 100	Setting prices based on cost

Industry Benchmarks

Industry	Typical Gross Margin
Retail (General)	20–50%
Manufacturing	25–40%
Software/SaaS	70–90%
Restaurants	60–70%
Construction	15–25%
Wholesale	10–30%
Services (Consulting)	40–60%

FAQs

It varies by industry. Retail businesses might see 20–50%, while software companies can have 70%+ margins. Service businesses often have higher margins than product-based businesses.

Margin is based on revenue (profitability as a percentage of sales), while markup is based on COGS (profitability as a percentage of cost). Markup is always higher than margin for the same profit amount.

Yes, if you can define your COGS (e.g., labor costs, materials, subcontractors). Service businesses often have lower COGS and higher gross profit margins.

No. Everything runs in your browser. Use Export or Share Link to save your calculation.

Gross Profit = Total Revenue - Cost of Goods Sold (COGS). It represents your profit before operating expenses, taxes, and other costs.

COGS typically includes direct costs to produce goods or services: raw materials, direct labor, manufacturing overhead, and inventory costs. It does NOT include operating expenses like rent, marketing, or salaries.

Yes, if your COGS exceeds your revenue, you have a negative gross profit (gross loss), indicating you're selling at a loss.

Increase prices, reduce COGS (negotiate better supplier rates, improve efficiency), or focus on higher-margin products/services.

Use the "Find Revenue for Target GP" tool above the results. Enter your target gross profit and your COGS, and it will calculate the required revenue: Revenue = Target Gross Profit + COGS.

Disclaimer

Informational estimate only. Does not include operating expenses, taxes, or other costs. Consult an accountant for full financial analysis and business planning.